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Conference “CSR: s.ll a challenge for HR?” 22 October 2013 in Brussels
Stefan Crets, Execu.ve Director, CSR Europe
1
What is CSR?
“The responsibility of enterprises for their impacts on society” IT IS ABOUT MANAGEMENT PROCESSES
Respect for applicable legisla.on, and for collec8ve agreements between social partners, is a prerequisite • CSR = a process for companies to integrate social, environmental,
ethical and human rights concerns into their opera8ons and core strategy, in close collabora.on with their stakeholders
• Maximising the crea8on of shared value through a long-‐term strategic
approach to CSR, the development of innova8ve products, services and business models…
FOCUS ON MID AND LONG TERM SUSTAINABLE GROWTH
Corporate strategies for building shareholder and societal value-‐added
Role of CSR with regards to HR stakeholder requirements
Source: CSR for HR: hGp://www.google.de/imgres?um=1&sa=N&biw=1366&bih=667&hl=nl&tbm=isch&tbnid=hNhwnJ5M8y6YJM:&imgrefurl=hGp://www.csrforhr.com/2011/06/cshr-‐going-‐global.html&docid=anLxIOdYG3pmcM&imgurl=hGp://4.bp.blogspot.com/-‐G5vJVZwiRu8/TgT-‐t61b-‐xI/AAAAAAAAAbo/MAyTuf2fFgw/s400/CSR%252Bfor%252BHR%252BMateriality.JPG&w=400&h=327&ei=uJ5DUt3jOYeFhQevn4HoBg&zoom=1&iact=hc&vpx=649&vpy=146&dur=4309&hovh=203&hovw=248&tx=150&ty=105&page=1&tbnh=131&tbnw=160&start=0&ndsp=21&ved=1t:429,r:18,s:0,i:136
HR stakeholder requirements
HR func.onal success and contribu.on to a sustainable business
Improve HR admin services
Provide worklife balance programs
Employee sa.sfac.on survey
Provide dental
insurance
Develop Green Teams
Improve internal comms
Employee Volunteering Program
Assess HR Sustainability
risks
Clarify and leverage social mission
Increase employee
engagement
Reduce HR costs
Embed human rights policy
Gender equality prog
Win the talent war
Strategic business
partnership
Low carbon skills
recruitment
5
Enterprise 2020: It is about business not mere compliance
Social innova*on = new ideas, business models, products & services that resolve exis*ng sustainability challenges
The way ahead 2013-‐2015
Enterprise 2020 Ini.a.ve
Sustainable Living in Ci.es
Skills for Jobs
Nine campaign projects Areas Project Leaders/Partners
Workplace Innova.on
Rethinking Careers
Health and Wellbeing
Supplier Diversity (‘14)
Entrepre-‐neurship
Changing Lives
Intrapreneurship Programme
Entrepreneurship Boost
Skills for Employability
Deploy Your Talents (STEM)
Quality Internships & Appren.ceships
Inclusion Fostering Inclusion
Rethinking careers: integra.ng longer working lives into all HR opera.ons
CSR Europe’s project on Rethinking Careers
Purpose Deliverables
Iden8fied Issue/Gap • New legisla8ons for prolonged re8rement age • Beyond focusing on senior wokers, companies
need to take a holis8c approach à rethink careers
Proposed solu8on • Understand the levers and obstacles of lifelong
HR Management • Share knowledge • Support in shaping the necessary policy
framework
• Assessment of lifelong employability
à Assessment Report + Benchmark
• Knowledge sharing à Publica8on, incl. lessons
learned + best prac8ces • Policy dialogue à Policy recommenda8ons
• Rethinking careers publica.on • Lifelong Employability Assessment
(LEA-‐Tool): CSR Europe is offering a Rethinking Careers Assessment to measure a company’s ability to i n t e g r a t e a g e -‐m a n a g eme n t processes into HR opera8ons across life-‐stages
• 12-‐13 November 2013 in Brussels: European Employment Forum
For more informa+on on the publica+on and how to par+cipate in the assessment, please contact Sarah Dekkiche ([email protected])
Business benefits of a healthy workforce
Improved brand
Improved reten.on
Improved resilience
Higher commitment
Higher produc.vity
Fewer accidents
Reduced sickness
The Business case of Health Literacy
Health literacy ac8vi8es in the business context create value not only for employees, but also for businesses
Business and Human Rights
(2) Management of Complaints
Why par.cipate:
• Assess the effec8veness of current company processes for addressing complaints from employees and/or communi8es.
• Learn from a set of best prac8ces and tools
Available tools
• MOC-‐A: Management of Complaints Assessment tool
• Publica8on on company mechanisms for Addressing Human Rights Complaints
Two work streams
within one network on business and human rights 11
CSR Europe’s MOC-‐A tool: The 8 effectiveness criteria are broken down into 22 concrete process requirements The MOC-‐A tool (Management of Complaints Assessment), allows: • To evaluate the 22 process requirements on their level of maturity and assign a score to each
company’s practice • Draw Individual benchmark graphics to provide company with their position against peers
and allows to identify gaps • Compile a set of good practices for each of the effectiveness criteria.
What is available for companies now:
• 22 indicators to support HuRis practitioners in decision making process à the 8 effective criteria were broken down to identify key elements of a grievance mechanism operating principles
• Matrix: ”beginners “– “advanced” – “effective” maturity level à 3 levels of maturity of grievance mechanism were identified; explanation of each of them and practical examples are available (Please note that the “effective” level is limited to the group of companies we have been interviewed)
Matrix -‐ Assessment sheet with practical examples for each of the levels of maturity
Individual benchmark graphics provide company with their position against peers and allows to identify gaps
Score on the 8 UN criteria
Total score benchmark against other companies
Gaps in specific processes requirements 8 Criteria
benchmark
21 processes requirements
more informa8on
Business and Human Rights
12
Two work streams
(1) Embedding Human Rights
Why par.cipate:
• Understand the relevance of human rights across departments – HR, procurement and legal/ risk management
• Translate human rights into func8on-‐specific processes
Upcoming tools:
• Department-‐specific tools e.g. training, guidance materials
within one network on business and human rights
Link to Human Rights • Human rights risks throughout the supply chain (eg. child/forced labor, working hours, freedom of associa8on, con8ngent labor)
• Linkage situa8ons: human rights risks further down the supply chain (eg. conflict minerals)
Day-‐to-‐Day Ac.vi.es • Outsourcing of produc8on to low cost countries
• Sourcing of raw materials, agricultural products, chemicals,
• Procurement decisions (eg. lead 8mes, contract terms, margins)
• Monitoring and improvements
Risks • Sole focus on labor rights • Biggest suppliers vs. highest risks • Parallel vs. integrated processes • Sole approach is compliance and/or cut and run
Opportuni.es • Respect for human rights correlates with high performance in other areas
• Risk-‐based approach • Working with others (eg. Bangladesh Accord)
EU legisla.ve proposal on Non-‐financial Informa.on
CONTENTS of non-‐financial statement
Informa8on must relate to the company’s policies, results and risk-‐related aspects on at least...
May rely on na.onal, EU-‐based or interna.onal frameworks, such as
Include statutory audits...
• Environmental aspects; • Social & employee-‐related maders; • Respect of human rights; • An8-‐corrup8on and bribery aspects
• UNGC • ISO 26000 • ILO Declara+on • GRI • EMAS • German Sustainability Code (DNK) • .....
Should contain an opinion concerning the consistency or otherwise of the annual report, including non-‐financial informa8on, with the annual accounts for the same financial year
COMPLY or EXPLAIN
Where a company does not apply policies in one or more of these areas, the company shall provide a reasoned explana8on
for not doing so.
Scope and Requirements I
• COMPANIES CONCERNED • Large companies: • Average number of
employees exceeds 500 • AND • The balance sheet total
exceeds €20million OR the net turnover exceeds €40million
• These companies must include in their annual report OR in the review within a consolidated annual report, a non-‐financial statement →
Scope and Requirements II
Informa.on on the objec.ves, the implementa.on and results obtained from their diversity policies for their administra.ve, management and supervisory bodies...
With regards, in par.cular, to aspects such as: -‐ Age -‐ Gender -‐ Na.onality -‐ Educa.onal and professional background -‐ Other aspects companies may consider relevant
COMPLY OR EXPLAIN
Companies not having a diversity policy should not be obliged to put one in place but they should clearly explain why this is the case
Large listed companies: • Large companies are taken to mean companies which exceed the given threshold values for any two of three variables: balance sheet total, annual turnover and average number of employees. • Listed companies are taken to mean companies which are listed on the Main Stock Exchanges in European Economic Area (EEA) Member Countries.
These companies should disclose as part of their corporate governance statement
EU legisla.ve proposal on Non-‐financial Informa.on
15
For more informa8on contact Stefan Crets ([email protected])
www.csreurope.org Connect Share Innovate
Thank you very much for your aden.on!